A2500, Lower Road Improvement, Minster Proposal

DeliveringUnlocking CongestionGrowth without‐Growth withoutGridlock Gridlock in Kent in Kent A2500Lower Road,– Lower Minster Road Improvement, Minster

National Productivity Productivity Investment Investment Fund Fund for forthe theLocal Local Road NetworkNetwork Application Application Form Form June 2017

Supported by

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Preface

I am delighted to submit this bid for the National Productivity Investment Fund for the Local Road Network.

Kent has ambitious targets for growth, and as a County Council we recognise that transport infrastructure is vital to stimulating regeneration and encouraging people and businesses to come to Kent. We are passionate about growing the local economy and positively contributing to the wider regional and national picture, where our role as an important International Gateway comes to the fore. The ability to travel easily, quickly and safely to our destinations requires a transport network that caters for current demand, enables growth and supports a growing population. We therefore welcome this opportunity to fund such an important scheme to simultaneously ease congestion and help provide for safe walking and cycling.

The scheme proposes to widen a 1.1km section of the A2500 Lower Road between the A249 and Barton Hill Drive on the Isle of Sheppey, including the construction of a new shared footway/cycleway alongside the road which will provide the infrastructure for all road users, currently lacking in this location, and enabling 620 homes and 216 associated jobs to be created. These improvements will join up with a Local Growth Fund scheme to upgrade the junction with Barton Hill Drive and therefore maximise the benefits of that work too. The scheme will support economic growth in what has historically been a relatively deprived area of the county by improving journey quality and reliability into town centres and key employment sites, as well as access to/from the Strategic Road Network (A249). The footway/cycleway will connect communities east-to- west between Minster and Queenborough as well as providing a commuter link for existing and proposed residential development in the immediate vicinity of the scheme. Reliable transport links to employment areas and service centres are essential to supporting housing growth and increasing productivity.

Being within the Thames Estuary 2050 Growth Commission area, the Isle of Sheppey is ripe for economic growth. Investment plans are being made by Peel Ports (Port of Sheerness), Highways England are upgrading M2 Junction 5, there is development at Kemsley Fields Business Park and Eurolink Business Park (both in Sittingbourne), not forgetting the Homes and Communities Agency-led regeneration on the Isle of Sheppey itself at Queenborough and Rushenden. We must now secure investment on the Local Road Network to ensure that people can access these exciting opportunities and the productive output of the area can grow. Investment in this scheme will therefore achieve excellent value for money.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Our proposal is fully supported by our Local Transport Plan 4: Delivering Growth without Gridlock 2016 – 2031, which sets out the improvements to Lower Road and improved east-west cycleways on Sheppey as key priorities for the Swale Borough area. Furthermore, our Active Travel Strategy clearly sets out our ambition to make active travel an attractive and realistic choice, recognising the significant benefits this brings to public health, reducing congestion and improving air quality. This scheme directly supports those objectives. The South East Local Enterprise Partnership’s (SELEP) Strategic Economic Plan (SEP) highlights the Thames Gateway Kent (including Sheppey) as an area with comparatively low productivity and skills, and so this scheme supports SELEP’s plans to combat this legacy from the area’s industrial past.

I can assure you of our successful track record in delivering similar schemes elsewhere in the County; we met the March 2015 funding deadline for the delivery of two schemes, funded through the Local Pinch Point Fund, North Farm Improvements and Westwood Relief Strategy (Poorhole Lane Widening). Likewise, we are successfully delivering a large programme of Local Growth Fund schemes, including the widening of the M20 Junction 4 Western Overbridge from 2 to 3 lanes, which was delivered within budget in 2016.

Finally, the A2500 Lower Road improvement scheme has very strong local support at County and Borough level. The land will be gifted by the land owner and match funding of 34% though commitments from developer and local authority contributions has been achieved. Fundamentally, this scheme directly accords with the aims of the National Productivity Investment Fund for the Local Road Network by removing transport barriers to economic growth, unlocking housing development and connecting communities with existing employment opportunities. As such I commend it to Government.

Matthew Balfour Kent County Council Cabinet Member for Highways, Transportation and Waste

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

List of Appendices

Appendix Title

Appendix A Letter of Support from Swale Borough Council

Appendix B Letter of Support from the land owner and developer

Appendix C Letter of Support from the South East LEP

Appendix D Project Impact Proforma

Appendix E Appraisal Summary Table

Appendix F Detailed Project Plan in GANTT Form

Appendix G Risk Register with Quantified Risk Assessment (QRA)

Appendix H Risk Management Strategy

Appendix I Letter of Support from Gordon Henderson MP

Appendix J Letter of Support from KCC s151 Officer

Appendix K Letter of land valuation from Bruton Knowles

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Applicant Information

LOCAL AUTHORITY NAME Kent County Council

BID MANAGER NAME AND POSITION Mary Gillett, Major Capital Programme Manager

CONTACT TELEPHONE NUMBER 03000 411638

EMAIL ADDRESS [email protected]

POSTAL ADDRESS Kent County Council, Highways, Transportation and Waste, Invicta House, County Hall, Maidstone, Kent ME14 1XX

WEBLINK FOR PUBLISHED BID www.kent.gov.uk/transportfunding

COMBINED AUTHORITIES If the bid is from an authority with a Combined Authority, please specify the contact, ensure that a Combined Authority has provided a note ranking multiple applications, and append a copy to this bid.

Name and position of Combined Authority Bid Co-ordinator: N/A

Contact telephone number: N/A Email address: N/A

Postal address: N/A

When authorities submit a bid for funding to the Department, as part of the Government’s commitment to greater openness in the public sector under the Freedom of Information Act 2000 and the Environmental Information Regulations 2004, they must also publish a version excluding any commercially sensitive information on their own website within two working days of submitting the final bid to the Department. The Department reserves the right to deem the business case as non-compliant if this is not adhered to.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Sheppey Crossing

Section A – PROJECT DESCRIPTION AND FUNDING PROFILE

A1. PROJECT NAME

A2500, Lower Road Improvement, Minster

A2. PROPOSED PROJECT

The scheme proposes to improve a 1.1km section of the A2500 Lower Road between the A249 and Barton Hill Drive on the Isle of Sheppey, including widening of the carriageway and construction of a new shared footway/cycleway, supporting future growth and transforming the journey experience for all road users.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Figure 1: Concept Arrangement

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Figure 2: Scheme Constraints Plan

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Figure 3: Land Ownership

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

A3. GEOGRAPHICAL AREA

The A2500 Lower Road is located in Minster on the Isle of Sheppey. The link serves as the primary route for traffic from the A249 Sheppey crossing to the east of Sheppey (Eastchurch and Leysdown). It also provides the main through route to the three prisons on the island.

Figure 4: Geographical Area including development sites

OS Grid Reference: Easting (x); 593672, Northing (y) 171582 Postcode: ME12 3RL (nearest)

A4. TYPE OF BID

Small project bids (requiring DfT funding of between £2m and £5m)

Large project bids (requiring DfT funding of between £5m and £10m)

A5. EQUALITY ANALYSIS

Has any Equality Analysis been undertaken in line with the Equality Duty?

Yes No

An Equality Impact Assessment Initial Screening Report has been completed in line with the Kent County Council’s guidance on Equality and Diversity. The assessment report concludes that a full Equality Impact Assessment will not be required for the proposed scheme. The assessment identifies a low impact of the scheme and does not have an adverse impact on any particular group of protected characteristics. The report is still to be reviewed by the Council’s Corporate Equality and Diversity team.

OS Grid Reference: X-593590 Y-171565 Postcode: ME12 3RL

A4. TYPE OF BID

Small project bids (requiring DfT funding of between £2m and £5m)

Large project bids (requiring DfT funding of between £5m and £10m)

A5. EQUALITY ANALYSIS

Has any Equality Analysis been undertaken in line with the Equality Duty?

Yes No

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

A6. PARTNERSHIP BODIES

Kent County Council will deliver the project by working closely with Swale Borough Council building on existing strong relationships with this organisation. Details of partners are shown in Table 1.

To deliver the proposed scheme, Swale Borough Council (the Local Planning Authority) and Kent County Council will enter into a Section 106 Agreement with the developer of adjoining land under the Town and Country Planning Act 1990 in order to unlock key housing. A support letter is provided in Appendices A and B respectively. The development will deliver Policy AX1 of the Swale Draft Local Plan, which delivers 620 homes.

Table I: Partnership Bodies

Partner Nature and/or value of involvement (financial, operational etc.) Kent County Council Operational Swale Scheme of significant importance for delivery of Local Plan site allocations S. W. Attwood Farms Ltd Financial; owner of site and adjoining land New Homes and Land Ltd. Developer (part of the Attwood Group)

A7. COMBINED AUTHORITY (CA) INVOLVEMENT

Have you appended a letter from the Combined Authority supporting this bid?

Yes No

A7. LOCAL ENTERPRISE PARTNERSHIP (LEP) INVOLVEMENT AND SUPPORT FOR HOUSING DELIVERY

Have you appended a letter from the LEP supporting this bid? Yes No

Appendix C shows a support letter from the South East LEP.

For proposed projects which encourage the delivery of housing, have you appended supporting evidence from the housebuilder/developer? Yes No

Appendix B shows a support letter from the land owner and developer

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Section B – THE BUSINESS CASE

B1. PROJECT SUMMARY

Please select what the project is trying to achieve (select all categories that apply) Essential Ease urban congestion Unlock economic growth and job creation opportunities Enable the delivery of housing development

Desirable Improve Air Quality and /or Reduce CO2 emissions Incentivising skills and apprentices

Other(s) This scheme supports the objectives of the KCC Active Travel Strategy, which aims to make active travel an attractive and realistic choice, recognising the significant benefits this brings to public health, reducing congestion and improving air quality.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B2. THE STRATEGIC CASE

a) What is the problem that is being addressed? The area proposed for improvement is a narrow single carriageway route described as the ‘missing link’ in Sheppey’s road network. This road currently does not provide a safe and suitable route for all users. The narrow road width, lack of verges and abutting hedgerows create a constrained corridor, with no facilities for cyclists or pedestrians. This situation effectively severs the connection for non-motorised road users between the residential areas of south Minster and employment opportunities in Queenborough, and provides a poor quality experience for vehicular traffic with ever- growing maintenance issues. Larger vehicles struggle to pass, continually deteriorating the carriageway edge.

Traffic using the A2500 Lower Road

b) What options have been considered and why have alternatives been rejected? Two main options were considered for carriageway widening; one with a cycleway to the north of the A2500 and one to the south.

The northern option is favoured as landowners are supportive being party to the adjoining development land with future residents able to benefit from the new infrastructure. This option minimises the need for cyclists to cross the A2500 when travelling between Queenborough and Minster, providing safety and journey time benefits.

The southern option was discounted due to land ownership constraints, safety concerns that additional crossings presented and their effect on traffic flow.

c) What are the expected benefits/outcomes? For example, could include easing urban congestion, job creation, enabling a number of new dwellings, facilitating increased GVA. The expected benefits and outcomes of the widening and cycleway scheme are: • The provision of a full, coherent east-west cycle link between Minster and Queenborough (containing key employment areas), removing the conflict with motorised traffic; • Increased opportunities to use active and sustainable modes of travel and hence reduce car dependency and its associated negative impacts;

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

• Improved quality of the road for motorised users, easing the pressure of congestion; • To support economic growth in the area with improved access to key employment areas which is required alongside the proposed housing growth; and

• Deliver 620 homes and 216 associated employment opportunities.

d) Are there any related activities that the success of this project relies upon? For example, land acquisition, other transport interventions requiring separate funding or consents? A strip of land to the north of the existing highway is required for the scheme, approximately 10 metres wide. The land ownership plan identifying the land required is shown in drawing 30323-FS-LE-24, see Figure 3.

The landowner, Mr S. Attwood on behalf of S. W. Attwood Farms, has stated that he is fully supportive of this highway improvement scheme (see Appendix B), with the offer of a financial contribution in addition to the land required for 620 homes. The offer is subject to planning consent for 620 houses at the adjacent site also owned by S. W. Attwood Farms.

e) What will happen if funding for this project is not secured – would an alternative (lower cost) solution be implemented (if yes, please describe this alternative and how it differs from the proposed project)?

Without this funding the provision of the highway improvement associated with Policy AX1 and the delivery of 620 homes becomes unviable. There are no other sites identified that could provide the level of funding to deliver the highway improvement. A lower cost solution with equivalent wide-ranging benefits has not been identified. Options such as widening the carriageway without providing the footway/ cycleway would not deliver the same level of benefit to all users, particularly pedestrians and cyclists. Similarly, to connect neighbouring settlements with a route suitable for all users, the whole length of the route requires upgrading.

f) What is the impact of the project – and any associated mitigation works – on any statutory environmental constraints? For example, Local Air Quality Management Zones.

The proposed scheme to widen the existing narrow carriageway and construct a footway/ cycleway does not impact upon any statutory environmental areas and the scheme is not in a local air quality management zone.

It is noted that the proposals are, at its nearest point, 600m from the SSSI and Ramsar Sites along the Swale and 1km from the Elmley Marshes National Nature Reserve but the scheme will not impact on these areas.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B3. THE FINANCIAL CASE – PROJECT COSTS

Local contribution equates to 34% of the total project cost

Table A: Funding Profile (Nominal Terms) £000s 2018-19 2019-20 Total

DfT funding sought 1,478 1,717 3,195 Local Authority contribution 0 200 200 Third Party contribution 0 1455 1,455 TOTAL 1,478 3,372 4,850

Table II: Cost Estimates (Nominal Terms)

Date Cost Heading Cost (£000s) Status Estimated Works Costs (inc Utility Diversions) £3160k June 2017 Feasibility

Outline Design £75k June 2017 Feasibility £20k June 2017 Feasibility Consultation Detailed Design £280k June 2017 Feasibility

June 2017 Supervision £320k Feasibility

Surveys £30k June 2017 Feasibility

Archaeology £35k June 2017 Feasibility Ecology £35k June 2017 Feasibility

Project Management £143k June 2017 Feasibility Quantified Risks £520k June 2017 Feasibility

£232k June 2017 Feasibility Land Cost TOTAL £4850k

Notes: 1) Department for Transport funding must not go beyond 2019-20 financial year. 2) Bidders are asked to consider making a local contribution to the total cost. It is indicated that this might be around 30%, although this is not mandatory.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B4. THE FINANCIAL CASE - LOCAL CONTRIBUTION & THIRD PARTY FUNDING

a) Provide an outline of all non-DfT funding contributions to the project costs, the level of commitment, and when the contributions will become available.

We have secured 34% of the total scheme cost through a combination of third-party funding and Local Authority contribution. The details of non-DfT contributions are given below in Figure B.4. All parties have demonstrated a level of commitment to the scheme that can be seen in the appended ‘letters of support’.

Table III: Distribution of Non- DfT Contribution

Non-DfT Funding Source Contribution Value Funding Available Swale Borough Council 200k 2019 S.W. Attwood Farms Ltd – DEV Con 1,223k 2019 S.W. Attwood Farms Ltd – Land 232k 2019 Value Total 1,655k

b) List any other funding applications you have made for this project or variants thereof and the outcome of these applications, including any reasons for the rejection.

None

Elmley Marshes, Nature Reserve

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B5. ECONOMIC CASE

A) Requirements for the small project bids (i.e. DfT contribution of less than £5m)

a) Please provide a description of your assessment of the impact of the project to include:

- Significant positive and negative impacts (quantified where possible) including in relation to air quality and CO2 emissions. - A description of the key risks and uncertainties; - If any modelling has been used to forecast the impact of the project please set out the methods used to determine that it is fit for purpose

*Small projects bids are not required to produce a Benefit Cost Ratio (BCR) but may want to include this here if available.

Small Project Bid Economic Case Overview

The Economic Case provides evidence of how the scheme is predicted to perform, in relation to its stated objectives, identified problems and targeted outcomes. The Economic Case determines if the proposed A2500 Lower Road Widening scheme is a viable investment, describing the common appraisal criteria and assumptions used to determine the scheme’s economic worth and value for money (VfM).

The predicted scheme appraisal focuses on those aspects of scheme performance that are relevant to the nature of the intervention. However, we do acknowledge the strands of assessment that are required under various pieces of statutory guidance (e.g. DfT WebTAG, VfM Assessment and HM Treasury ‘Green Book’).

Existing Situation

At present, the A2500 between Barton Hill Drive and the Sheppey Way/ Queenborough Road/ A249 roundabout is single carriageway affording no walking or cycling facilities. The road is narrow with a national speed limit from the roundabout as far as Thistle Hill (west of Barton Hill Drive) where it becomes 40mph. The area surrounding Minster-on- Sea (where Barton Hill Drive is located) is predominantly residential with limited employment opportunities. The A2500 affords access from the east of Sheppey to employment opportunities to the west of the island and beyond. Congestion is an issue along the A2500, in particular during peak periods and the holiday season when tourists flock to resorts along the east and northern coastline. The widening scheme is linked to a Local Growth Fund Business Case bid which intends to upgrade the Barton Hill Drive Junction from the existing signalised junction to a 3 arm roundabout aimed at reducing delay and improving network performance. The schemes have been designed so as to complement one another and both are aimed at improving network efficiency, reducing emissions and easing congestion. Proposed Situation

The scheme will see a widening of the highway network to 7.3m in addition to introducing a 3m wide shared cycle and footway. Whilst highway improvements in the local area are welcomed, the introduction of further development over the coming years will add further strain on an already congested section of highway.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Options Appraised

For assessment purposes, a do nothing, where no widening or walk and cycle improvements are introduced has been considered as well as a do something option which includes the widening and walk/ cycle infrastructure. Estimating Demand

Case study evidence reveals that the benefits associated with active modes are extensive both from an economic, social and health perspective. In order to ascertain the likely impact a scheme with dedicated cycle and walk infrastructure could have, it was first important to understand how many people could be expected to benefit from the scheme. The demand impact of the scheme has been estimated using the comparative study approach as outlined in WebTAG A5.1 (Active Mode Appraisal – January 2014). The increase in demand is based on a comparative scheme which witnessed a considerable growth in sustainable journeys post scheme opening. Existing levels of demand have been taken from the 2011 Census via Nomis. Analysis at Medium Super Output area level has been undertaken to understand movements to and from the immediate scheme and surrounding areas. Only trips that could potentially be made by cycle along the corridor have been considered and therefore Origin/ Destination analysis has been restricted to journeys of a maximum 15km in length1. Whilst it is conceivable that journeys greater than 15km in length could be made, the 15km cap is sensible and limits the potential to over-estimate benefits. A journey of up to 15km from the proposed scheme location would cover the employment centres of Sittingbourne, Queenborough/ Rushenden and Sheerness. Figure 5: Wider Scheme Benefits

1 Strava Data http://www.bikebiz.com/news/read/strava-reveals-average-british-cycle-commute- length/018882

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Analysis of movements between super output areas adjacent to and east of the proposed scheme covering Minster, Eastchurch and Leysdown-on-Sea and those to the west and south including Sheerness, Queenborough/ Rushenden and Sittingbourne has been undertaken. The following table indicates the mode share from the 2011 Census for the areas discussed.

Table IV: Mode Share from 2011 Census

Mode Proposed Mode Share Work mainly at or from home 0% Underground, metro, light rail or tram 0% Train 2% Bus, minibus or coach 1% Taxi 0% Motorcycle, scooter or moped 2% Driving a car or van 82% Passenger in a car or van 7% Bicycle 2% On foot 3% Other method of travel to work 0%

It can be seen that sustainable movements only account for 5% of the mode share with car driver being the predominant mode. It is clear that this needs to change in order to accommodate further development, improve air quality and reduce congestion. Demand between the residences and places of work discussed above reveals that 1673 people could commute (based on Census 2011 information) along the corridor, equating to 3346 two way journeys (potential mode change demand). Immediately north of the A2500 widening scheme, land to the west of Barton Hill Drive has been allocated for 620 dwellings which will exacerbate the issues already being experienced along the corridor should existing mode share levels remain. In order to understand the likely demand from the allocated site, Census data has again been interrogated in order to understand the average household size, economic activity and those who travel for work purposes within the area of influence. The average household size for Swale is 2.4 persons per household equating to 1488 residents (620*2.4). Of these, 991 will be economically active, with 643 in employment. The proportion of people living in the super output areas on Sheppey commuting to Sittingbourne, Sheerness, Queenborough and Rushenden is 36% and applying this to those who are likely to work suggests 232 additional commuters or 464 potential two way journeys. The demand based on the analysis undertaken indicates 3809 potential journeys for work (3346 + 464) to and from Sheppey who could potentially use the A2500 corridor. It should be noted that this figure is deemed to be an underestimate of the potential

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

demand as it does not take account of leisure or educational trips. It also does not take account of walk trips as very few employment opportunities exist within a sensible walking distance. Case Study Evidence The All Party Parliamentary Cycling Group Get Britain Cycling’ set up ambitious targets related to cycling which include targeting a 10% cycle mode share by 2025 and 25% by 2050. Cycling mode shares are increasing in particular in cities across the UK as greater emphasis is placed on increasing the number of sustainable users by improving facilities. Census 2011 data indicates that cycle mode share can be increased for journeys to work as seen in the table below;

Table V: Cycle Mode Share from 2011 Census

Local Authority Mode Share Cambridge 29.9% Oxford 17.6% Isles of Scilly 15.9% Hackney 14.6% Edinburgh 12% York 11.4% Moray 10.3% Argyll & Bute 9.1% Stirling 8.7%

Whilst it is unfeasible to suggest that a mode share similar to Cambridge2 could be experienced between Sittingbourne and Sheppey in the near future, there is a case to suggest that authorities with comparable geographical characteristics could experience similar mode shares. Stirling is similar to Swale with regards to topography in that it is fairly flat and easy to get around with a river separating two distinct land uses. Local Fit The geography and topography of the Sheppey/ Sittingbourne area lends itself to cycling with defined areas of residential and employment located within close proximity. The area is flat and already has dedicated cycle provision to and from Sheppey via the National Cycle Network route 174 which is a mixture of traffic free and on-road routes. Route 174 also connects with NCN route 1 affording on and off road facilities east and westbound from Sittingbourne. The proposed route would see route 174 extended to connect with the predominantly residential neighbourhood of Minster-on-Sea.

2 http://www.bikeradar.com/commuting/gear/article/the-uks-best-and-worst-cycling-cities-48566/

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With an estimated 40% of all journeys made in the UK, less than 2 miles in length and 70% less than 5 miles3 it is clear that an opportunity exists to establish cycling as a prominent transport alternative. Proposed Mode Share Based on Case Study Evidence

Based on existing mode shares from elsewhere and the government’s target of achieving a 10% cycling mode share by 2025, it is deemed reasonable that a mode share of 10% could be achieved based solely on potential journey to work journeys as indicated below.

Table VI: Cycle Mode Share from 2011 Census

Mode Proposed Mode Share 0% Work mainly at or from home 0% Underground, metro, light rail or tram 2% Train 1% Bus, minibus or coach 0% Taxi

Motorcycle, scooter or moped 2%

Driving a car or van 74%

Passenger in a car or van 7%

Bicycle 10%

On foot 3%

Other method of travel to work 0%

As previously outlined, the figure of 10% does not take account of potential leisure and educational journeys and could therefore be seen as an underestimate. Appraisal Assumptions Active Mode Tool kit The following assumptions have informed the economic case; • 2019 Scheme opening Year; • 15 Year Appraisal; • Optimism Bias at 3% - (‘conditional approval’ stage 3) in line with WebTag Unit A1.2 (November 2014); and • An average journey length of 15km has been applied (based on the average suggested by Strava) with a speed of 15kph.

Present Value Outcomes from Economic Appraisal

3 DfT, 2005

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

The present value outcomes of the A2500 Lower Rd Widening are set out in the table below, which summarises the Analysis of Monetised Costs and Benefits (AMCB). The costs and benefits are calculated based on the following:

• Scheme cost (2016 prices) – KCC supplied; • The base costs have been adjusted to incorporate real cost increases (WebTAG A1.2) in construction costs; • Cost adjusted for quantified risk and optimism bias (2016 prices excl. VAT); • Risk and optimism bias adjusted cost converted to 2010 prices; • Discounted Risk and optimism bias adjusted cost in 2010 prices; • Discounted Risk and optimism bias adjusted cost in 2010 market prices; • User Benefits (PVB) for the initial BCR are based on vehicle user time savings; and • PVB has been adjusted to register the cost of developer contributions (£1.45m) to the private sector developer. Applying the cycle mode share uplift to the projected demand highlighted earlier in this section would see the number of journeys rise from 75 at present to 386 over the course of a 12 hour day. These figures have been applied to the DfT’s Active Mode Toolkit which calculates the benefits/ disbenefits associated with introducing particular schemes. The following Analysis of Monetised Costs and Benefits (AMCB) table provides a summary of the results.

Table VII: Monetised Costs and Benefits

Item 2010 Present Value (£’000s)

User Present Value Benefit (PVB) £7,349,393.62

Capital Present Value Cost (PVC) £2,692,485.45

Scheme Net Present Value (NPV) = PVB-PVC £4,656,908.17

Scheme Initial Benefit to Cost Ratio 2.73

In addition to the quantitative benefits outlined in the table above, an Appraisal Summary Table (AST) also accompanies this report wand identifies further qualitative benefits associated with the proposed scheme. In summary, the scheme would still achieve a BCR in the high category.

Risks and Uncertainties

In order to take account of potential risks associated with the scheme assumptions, sensitivity tests have been undertaken in order to identify the variation in BCR should costs escalate by 10% (Test 1) or the transfer to cycling (Test 2) not take place in anticipated levels (only 7% cycling Mode Share). The following table highlights the results of the sensitivity tests.

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Table VIII: Sensitivity Tests

Test 2 - % Modal Share Test 1 – Increase Reduction Item Do Max in costs (10% (compared increase) with expected) User Present Value Benefit £7,349,393.62 £7,349,393.62 £4,204,222.59 (PVB) Capital Present Value Cost £2,692,485.45 £3,077,720.13 £2,692,485.45 (PVC) Scheme Net Present Value £4,656,908.17 £4,271,673.49 £1,511,737.14 (NPV) = PVB-PVC

Scheme Initial Benefit to Cost 2.73 2.39 1.56 Ratio

It can be seen that a 10% increase in costs would still achieve a BCR in the high category should the expected transfer to cycle take place. If the take up in cycling did not occur, the BCR would be lower at 1.56.

Value for Money Statement The Value for Money (VfM) has been prepared in accordance with the DfT's "Value for money assessment: advice note for local transport decision makers". The overall qualitative outcome is High, on a 4-point scale. This VfM is based on the quantified initial BCR for the scheme of 2.73 (i.e. High), with further adjustments for non-quantified BCR components, qualitative outcomes and risks / sensitivities.

b) Small project bidders should provide the following in annexes as supporting material:

Has a Project Impacts Pro Forma been appended? Yes No N/A

Appendix D shows the Projects Impacts Pro Forma.

Has a description of data sources / forecasts been appended? Yes No N/A

• Description contained in Section B5 (a) above

Has an Appraisal Summary Table been appended? Yes No N/A

Appendix E shows the Appraisal Summary Table.

Other material supporting your assessment of the project described in this section should be appended to the bid.

*This list is not necessarily exhaustive and it is the responsibility of the bidders to provide sufficient information to demonstrate the analysis supporting the economic case is fit-for- purpose.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B) Additional requirements for large project bids (i.e. DfT contribution of more than £5m)

c) Please provide a short description (max 500 words) of your assessment of the value for money of the project including your estimate of the Benefit Cost Ratio (BCR) to include:

- Significant monetised and non-monetised costs and benefits - Description of the key risks and uncertainties and the impact these have on the BCR; - Key assumptions including: appraisal period, forecast years, optimism bias applied; and - Description of the modelling approach used to forecast the impact of the project and the checks that have been undertaken to determine that it is fit-for-purpose.

d) Additionally detailed evidence supporting your assessment, including the completed Appraisal Summary Table, should be attached as annexes to this bid. A checklist of material to be submitted in the support of large project bids has been provided.

Has an Appraisal Summary Table been appended? Yes No N/A

- Please append any additional supporting information (as set out in the Checklist). * It is the responsibility of bidders to provide sufficient information for DfT to undertake a full review of the analysis.

Eastchurch Aviation Memorial

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B6. The Economic Case

i) Has Defra’s national air quality assessment, as reported to the EU Commission, identified and/or projected an exceedance in the area where the project will be implemented?

Yes No

ii) Is there one or more Air Quality Management Areas (AQMAs) in the area where the project will be implemented? AQMAs must have been declared on or before the 31 March 2017

Yes No

iii) What is the project’s impact on local air quality?

Positive Neutral Negative

Please supply further details:

The proposed scheme will widen the carriageway which will facilitate the passage of large vehicles, helping to keep speeds constant and reducing the need to brake. The provision of the cycleway aims to encourage mode shift from car to bicycle, thus reducing the number of vehicle trips and total vehicle emissions.

iv) Does the project promoter incentivise skills development through its supply chain?

Yes No N/A

- Please supply further details:

KCC Policy - “Better Outcomes, Changing Lives, Adding Social Value”

Skills development is incentivised by Kent County Council under its’ Social Value Policy which seeks to ‘maximise and give greater recognition to Social Value, incorporate consideration of social value questions in tender evaluation criteria and procurement decisions where possible, and develop a Social Value Charter’.

In order to ensure commitment to skills and development from the supply chain a ‘Social Value and Employment Plan’ will be prepared prior to the A2500 Lower Road project commencement. The supply chain will be expected to promote careers in construction and trades to local schools, and commit to employing young people and the long term unemployed. The social value comes through local jobs for local people and raising the aspirations of local pupils.

How will Skills Development be included in the Procurement Process?

Skills development is included in all major scheme contracts using the adaptable clause on the Public Services (Social Value 2012) Act, present in all HT&W contracts as standard. This clause is then amended (as below), setting a number of minimum requirements with the understanding that these should then be developed and added to over the course of the contract.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

‘Social Value & Employment’

The Contractor will take into account this Act in Providing the Works, wherever they can, to do anything they consider will promote or improve the well-being of the area. The Employer considers the following key:

a) Maximising opportunities for small and medium-sized enterprises (SMEs) and third sector organisations (TSOs) based in or around the area where the Works are taking place. b) Developing a workforce that is highly skilled and well-motivated and can truly meet the skill needs of the local economy. c) How waste is to be reduced in the Works and any waste that is created is recycled. d) That the Contractor and their supply chain can demonstrate that their policies encourage social, environmental and economic objectives within the areas they work.

The ‘Employers requirements’ of each contract defines social value and the Council’s aspiration. A construction tender quality question on social value (as below) then identifies ways in which the contractor can support KCC’s aspirations.

The employer is seeking an approach that considers and embraces social value as detailed in Works Information Schedule 6 Part 1 Para 1.3.2. Tenderers should describe what elements of social value they would bring to this project, the response should include details of the following: • Control and management of waste. • Generating employment especially for the local long-term unemployed. • Development of training opportunities for young people, and maintaining support after the completion of training. • Use of local small and medium enterprises and third sector organisations. This would include advertising for subcontractors through the Kent Business Portal. • Engagement of the local community to create opportunities to improve the local community. • Create opportunities to improve the local Environment.

Examples of Skills Development on Previous Projects

The following skills development has been carried out as part of recent projects:

• M20 Junction 4, Leybourne Eastern Overbridge Widening

a) Employment of a trainee site foreman. b) Employment of 31 SME’s, of which 20 (65%) were local or had local offices. Of 29 persons working on the project, 25 lived locally (within 30 miles). This represents 86% in terms of those locally employed.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

c) A secondary school visit of a small group of students. They were tasked with assessing the site as if they were a considerate contractor assessor. d) On site and off site training sessions provided to permanent and agency staff and operatives working on the project. e) Four civil engineering students from the University of Greenwich Medway campus site visit for schools assignment. They were given an induction and briefing on the job, followed by a site tour and access to some examples of risk assessments and method statements.

• Maidstone Bridges Improvement Scheme

a) Ensured creation of employment for the local workforce taking every possible opportunity to use local contractors and materials sourced from local suppliers. b) Offered students at Mid Kent College the chance to supplement their studies with work experience in their chosen field. A student who worked on this scheme over the summer hopes to find an apprenticeship with a civil engineering company.

Sheerness

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B7. Management Case – Delivery (Essential)

a) A project plan (typically summarised in Gantt chart form) with milestones should be included, covering the period from submission of the bid to project completion.

Has a project plan been appended to your bid? Yes No

A detailed project plan, in Gantt chart form, is provided as Appendix F, covering the period from submission of the bid to scheme completion. The project plan shows that the scheme will be delivered by the end of December 2019 and an allowance of 24 weeks is made for terminal float. The key milestones are clearly shown in Table C: Construction milestones below.

b) If delivery of the project is dependent on land acquisition, please include a letter from the respective land owner(s) to demonstrate that arrangements are in place to secure the land to enable the authority to meet its construction milestones.

Has a letter relating to land acquisition been appended? Yes No N/A

Appendix B shows a letter of support in regards to the Land Acquisition.

c) Please provide in Table C summary details of your construction milestones (at least on but no more than 6) between start and completion of works:

Table C: Construction milestones

Construction milestone Estimated Date Outline Design Sept 17 – June 18 Planning Sept 17 – Dec 18 Detailed Design Dec 17 – August 18 Procurement April 18 – Dec 18 Project Commencement Feb 19 Project Completion November 19

d) Please list any major transport projects costing over £5m in the last 5 years which the authority has delivered, including details of whether these were completed to time and budget (and if not, whether there were any mitigating circumstances)

KCC have a successful track record of delivering major transport schemes within the county. The most recent of which was the Local Growth funded, LGF, Maidstone Bridges Gyratory (MBG) project, M20 Junction 4 bridge widening, Local ‘Pinch Point’ funded Westwood Relief Strategy, Poorhole Lane, North Farm Improvements and the East Kent Access Phase 2 (EKA2).

The MBG, completed in March 2017, was designed to reduce congestion, improve journey time reliability and support economic growth. A complex project within the heart of a busy county town was successfully delivered on time and to budget whilst

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

maintaining access for local businesses and commuters alike. Excellent working relations with Maidstone Borough Council have been formed which will be beneficial to the delivery of the Lower Road project, should this bid be successful. The total value of the scheme was £5.74m of which £4.6m was funded by LGF.

M20 Junction 4 Eastern Overbridge Widening was implemented to reduce congestion and support local housing growth in the surrounding area. A project that had a significant level of interface with Highways England to ensure safety to all network users through delivery was completed in January 2017. This was a £5m LGF scheme delivered on time and within budget.

Westwood Relief Strategy, Poorhole Lane Widening was a ‘Local Pinch Point’ funded scheme that has seen the reduction in congestion at the highly trafficked location near the Westwood Cross shopping centre in Thanet. The £4.9m project was successfully completed in June 2015 within budget; a challenging construction scheme due to the amount of utility diversions required and large number of fibre optic cables requiring a close working relationship with a diverse range of companies.

North Farm Improvements, also funded through ‘Local Pinch Point’ was completed in October 2015 on budget but delayed due to very complex utility diversions and lack of co-operation from Statutory Undertakers. We have mitigated this risk on subsequent projects of a similar nature by engaging a dedicated Statutory Undertaker Co-Ordinator. With a total project cost of £7.35m, the scheme, similar in nature to the MBG was delivered to reduce congestion, improve journey time reliability and benefit the air quality in a busy business area. Engagement with the adjacent business community was key to the successful delivery of the scheme. A complex retaining structure was constructed which required the need for a multidisciplinary project team.

The East Kent Access 2 scheme, completed in May 2012, was designed to support economic development, job creation and social regeneration, improving access with high quality connections between the urban centres, transport hubs and development sites in East Kent. The overall objectives of the scheme were to unlock the development potential of the area, attract inward investment and maximise job opportunities for local people. The scheme was successfully delivered within budget and ahead of programme through the adoption of a robust management. The total value of the scheme was £87.0m of which £81.25m was funded by Central Government and was awarded a regional Institution of Civil Engineers (ICE) Excellence Award.

Maidstone Bridges Gyratory

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B8. Management Case – Statutory Powers and Consents (Essential)

a) Please list if applicable, each power / consent etc. already obtained, details of the date acquired, challenge period (if applicable), date of expiry of powers and conditions attached to them. Any key dates should be referenced in your project plan.

• Not Applicable.

b) Please list if applicable any outstanding statutory powers / consents etc. including the timetable for obtaining them.

• A scoping report is being prepared to enable the Planning Officer to confirm initial thoughts that the scheme is permitted development and does not require a full EIA – Complete Sept 2017 • If a full Environmental Impact Assessment (EIA) is required this would be prepared by August 2018 • Planning permission would then be achieved by December 2018

The environmental scoping report and the work on an EIA (if required) will be prepared in advance of the confirmation of the outcome of this bid in the autumn 2017.

B9. MANAGEMENT CASE – Governance (Essential)

Please name those who will be responsible for delivering the project, their roles (Project Manager, SRO etc.) and responsibilities, and how key decisions are/will be made. An organogram may be useful here. This project will be managed in house by APMP trained and experienced Kent County Council Project Managers, within the Major Capital Programme delivery team, using a well-established governance structure, which has been successfully applied to deliver other transport improvement schemes, including the Local Growth Fund Programme.

KCC have set up a clear and robust structure to provide accountability and an effectual decision making process for the management of the previous and current LGF funded schemes. This will continue for the National Productivity Investment funded projects. Each project will have a designated highly skilled and experienced KCC Project Manager.

An outline of the overall governance structure implemented to manage the delivery of each scheme can be found in the diagram below.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Figure 6: KCC Governance Diagram

National Productivity Investment Fund High Level Agenda Frequency Attendees Format Scope Agenda Items Key Deliverables/Feedback Templates Chair: TR Minutes of Meeting NPIF programme (high level) progress to Planning BC/RW/MG/MB/CH date Action List Agenda Design Every two months - Can Supported by PMs To discuss programme (i.e. high level Programme financial reporting Output distributed to all Minutes Sponsoring Group Construction be called in emergency attendees as required Face to Face meeting progress/preview next steps and Communication/Stakeholder Engagement Decision list Post Scheme Monitoring if needed discuss resolve issues) attendees + Programme Board Issues/Risk/Change attendees where appropriate Decisions

To record progress/outstanding Action list ready for the Sponsoring Group Progress Report Decisions needed Every two months MG Report actions/issues that require a decision Steering Group Progress Report made by the Board

Chair: MG Minutes of Meeting Planning MG/KCC NPIF programme progress to date Action List To discuss progress/preview next steps Design PMs/External Suppliers Programme financial reporting Agenda and discuss and resolve issues. Output distributed to all Programme Board Meeting Construction Monthly Face to Face meeting Communication/Stakeholder Engagement Minutes Escalate issues/decisions required to attendees + Steering Group Post Scheme Monitoring Issues/Risk/Change Sponsoring Group attendees where appropriate Internal Governance

Highlight report shared To collate and streamline all reports Identify Key Points for Programme Highlight Report Monthly MG Report highlighting areas of interest for the with PB attendees Use for Highlight Report Meeting Programme Board meeting. Programme Meeting.

Chair: KCC PMs NPIF project progress to date/MS MS Programme Update All input staff - Programme Progress update in Monthly/Fortnightly as Project Team/KCC Individual meetings per project to drive Project financial reporting Agenda Minutes Steering Group Meeting Progress Update Face to Face meeting Template for each project eg. required PMs/External Suppliers and discuss progress in detail Issues/Risk/Change Progress Report Actions Risk register/issues log

List of initials:

BC Barbara Cooper Corporate Director, Growth, Environment and Transport RW Roger Wilkin Director of Highways, Transportation & Waste TR Tim Read Head of Transportation MG Mary Gillett Major Capital Programme Manager MB Matthew Balfour Cabinet Member Planning, Highways, Transport & Waste CH Cath Head Head of Finance (Operations)

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

A detailed breakdown of the meetings (along with the attendees, scope and output of each) which make up the established governance process is set out below.

Project Steering Group (PSG) Meetings PSG meetings are held fortnightly to discuss individual progress on each scheme and are chaired by KCC Project Managers (PMs). Progress is discussed in technical detail raising any issues or concerns for all to action. A progress report, minutes of meeting and an update on programme dates are provided ahead of the Programme Board (PB) meeting for collation and production of the Highlight Report.

Highlight Report The Progress Reports sent by the KCC PMs comprise of the following updates; general progress, project finances, issues, risks and governance meeting dates. The Highlight Report identifies any areas of concern or where decisions are required by the PB meeting or higher. An agreed version of the Highlight Report is issued to the PB meeting attendees during the meeting.

Programme Board (PB) Meeting The PB meeting is held monthly and is chaired by the KCC Major Capital Programme Manager. Attendees include representatives from all three stages of the schemes (i.e. KCC Management, KCC Sponsors, KCC PMs). This meeting discusses project progress to date, drilling into detail if there is an issue or action (as identified in the PSG meeting), financial progress, next steps and actions. Outputs of this meeting are the Highlight Report and the minutes of meeting.

Escalation Report A list of actions and decisions that the PB meeting was unable to resolve is prepared ready for the Sponsoring Group (SG) meeting to discuss and ultimately resolve.

Sponsoring Group (SG) Meeting The SG is held monthly and will be chaired by Tim Read (KCC Head of Transportation). Attendees are Barbara Cooper (Corporate Director), Roger Wilkin (Director of Highways, Transportation and Waste), Tim Read and Mary Gillett (KCC Major Capital Programme Manager). This meeting discusses high-level programme progress to date, financial progress, next steps and closes out any actions from the escalation report. Output is sent to Mary Gillett for distribution. All actions from the start of this meeting cycle are to be closed out by the SG when they meet (i.e. no actions roll over to subsequent meetings).

KCC has a comprehensive approval process to ensure robust decisions are made on spending public money on improving our road network. Section B9 above demonstrates that we have proven governance mechanisms to deliver major transport schemes on time and within budget. We plan to build on this delivery record. The governance of the scheme requires management at three levels: corporate management; project board; and project delivery. The hierarchy for governance arrangements for the scheme are shown in Figure 7.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Figure 7: Project Management Role and Responsibilities

Role outside Role in Project Accountabilities in Name Project Responsibilities in Project Governance Governance Project Governance Governance

Corporate Management Provide strategic leadership to the

Project Board. Cabinet Member Elected member, Cabinet Member Give mandate to the

for Planning, Matthew Balfour for Planning, Senior Responsible Highways, Highways, Officer (SRO) and Lead the decision-making on KCC’s Transportation and Transportation Project Board to transport strategy and directs all Waste and Waste proceed with the transport investment. investment. Provide direction and guidance to the Project Board and ensure effective governance of the project.

Role outside Role in Project Accountabilities in Name Project Responsibilities in Project Governance Governance Project Governance Governance

Senior Responsible Roger Wilkin Director of Ultimate decision Work with the Project Board to create a Officer Highways, making authority (at suitable mandate for financial control in Transportation & officer level) and order to satisfy the funding Waste responsible for scheme requirements. delivery, including

ensuring that project Delegate responsibilities on any of his objectives are met and obligations to the Project Board. benefits are realised.

Project Board Make necessary decisions to allow the scheme to progress at a number of key Senior User Andrew Head of Highway Accountable for stages in the project lifecycle. Loosemore Operations ensuring that user needs are specified Approve major changes to the delivery correctly and programme and that the solution meets constituent/fundamental elements of those needs the project delivery including budget.

Obtain and provide the SRO with Project Executive Tim Read Head of Protect the interests of stakeholder / technical input to Transportation the council decisions affecting the project.

Accountable for the Assist the SRO in decision-making and Senior Supplier Consultant/ Framework quality of the products on-going progress of the project. NEC3 Contractor Contractors delivered by Agree all major plans. consultant(s)/ framework contractors Approve all budgets and tolerances for time, quality and cost along with reporting and monitoring requirements.

Have overall responsibility for managing risk on the project. Meet on a monthly basis and will be chaired by Project Executive.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Role outside Role in Project Accountabilities in Responsibilities in Project Name Project Governance Project Governance Governance Governance

Project Manager Mary Gillett Major Capital Ensure the needs of Be responsible for delivering the Programme the project are scheme on a day-to-day basis. Manager being met and co- ordinated and that Identify packages of work and the project is agrees with the Finance Business progressing to Partner the appropriate budget for agreed time and each individual work package. budget Ensure the follow up of all decisions by SRO and the Project Board.

Prepare Lessons Learned Report, Progress Report and End of Project Report.

Brief local councillors and officers on progress and ensure their buy-in.

Ensure appropriate stakeholder management and communication strategy in place and implemented Ensure suitable monitoring and evaluation framework is in place to realise scheme benefits.

Project Delivery Team Work Package Consultant/ Ensure the technical Responsible to the Project Leaders NEC3 work is delivered as Manager. Contractor per agreed standards of time, quality and Make decisions on scheme design, cost. construction and risks Report on progress on a weekly basis to the Project Manager and attend to Project Progress meetings that will be held every 4 weeks to discuss design engineering and delivery progress, issues, risk, and fees.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Figure 8: Project Governance Structure

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B10. MANAGEMENT CASE – Risk Management (Essential)

All projects will be expected to undertake a Quantified Risk Assessment (QRA) and a risk register should be included. Both should be proportionate to the nature and complexity of the project. A Risk Management Strategy should be developed that outlines how risks will be managed.

Please ensure that in the risk / QRA cost that you have not included any risks associated with the ongoing operational costs and have used the P50 value.

Has a QRA been appended to your bid? Yes No

Appendix G shows a fully Quantified Risk Assessment (QRA).

Has a Risk Management Strategy been appended to your bid? Yes No

Appendix H shows a fully Risk Management Strategy.

Please provide evidence on the following points (where applicable) with a limit of 50 words for each:

a) What risk allowance has been applied to the project cost?

Project costs are reviewed at every stage of the design and construction process by an independent cost consultant to ensure they are up to date and reflect the current market pricing. £519,619 risk allowance has been applied to the project cost, see Appendix G.

b) How will cost overruns be dealt with?

An estimate, including a risk allowance, has been undertaken by an independent cost consultant, to be refined as the scheme design is developed, with risks mitigated according to the Risk Management Strategy. If risks are unable to be mitigated, KCC accepts responsibility for meeting any associated cost overruns.

c) What are the main risks to project timescales and what impact this will have on cost?

Risks are evaluated during the design process and construction and risk reduction meetings will be held with the project team as necessary and risks managed and mitigated accordingly.

The main project risks are shown in Figure 9 quantified as £519,619.

Appendix G shows a fully documented Quantified Risk Register.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Figure 9: Main Project Risks

Risk Likelihood* Impact* Mitigation Not securing land 2 4 Land will be acquired via voluntary acquisition. Letter attached. There is a condition attached in that a planning consent is required on Site Policy AX1 for 620 houses to release the land and funding. Planning Application is being prepared with a view to getting consent in December 2018 Accuracy of Estimate -particularly 1 4 A preliminary design estimate has been given the increase in activity in undertaken by independent cost the construction sector which is consultants and a risk allowance has driving up prices. been included in the £4.85m scheme cost. The cost estimate will be regularly refined and updated as scheme design is developed. Construction Price Inflation 2 4 An inflation allowance has been included in the scheme estimate for a construction start date in 2019. This will be monitored and estimate kept under review. Cost over-run risk to KCC 2 4 An adequate risk allowance has been included in the £4.85m estimate Failure to achieve design on time 1 4 The Detailed design would be awarded to one of our framework consultants following on from their work on the feasibility design work. Failure to procure a contractor 2 5 Contractors are being more selective as UK emerges from recession. Apart from formal OJEU process, KCC HT&W Major Capital Programme Team will use its industry contacts to encourage an appropriate tender list can be selected and tender returns to be achieved. Project Management failure 1 3 KCC HT&W Capital Programme Team is a knowledgeable client with extensive experience of major scheme delivery. Permitted Development / 2 4 Initial thoughts from the Planning Planning Consent Officer is that this should be permitted development, however a scoping report will be required to enable a decision to be made. Should a Planning consent be required there is adequate time in the programme to undertake the surveys, prepare the EIA and obtain Planning Consent by December 2018 Archaeology 1 2 An archaeological desktop study will be undertaken. Further reports and field work to be undertaken to inform a planning application for Sept 2018 if required.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B11. MANAGEMENT CASE – Stakeholder Management (Essential)

The bid should demonstrate that the key stakeholders and their interests have been identified and considered as appropriate. These could include other local authorities, the Highways England, statutory consultees, landowners, transport operators, local residents, utilities companies etc. This is particularly important in respect of any bids related to structures that may require support of Network Rail and possibly, train operating company(ies).

a) Please provide a summary in no more than 100 words of your strategy for managing stakeholders, with details of the key stakeholders together with a brief analysis of their influences and interests.

Consultation is a key element of the project. The approach to the management of the stakeholders and other parties is illustrated in Figure 10.

Early engagement with stakeholders, includes Swale Borough Council and landowners, has commenced and will continue throughout the project’s lifecycle.

Businesses and residents, including the Lower Road Action Group, who have been pressing for the implementation of these improvements, will be formally consulted via a planned public event.

Stakeholder engagement will be undertaken with public transport operators (Chalkwell Coach Hire and Travelmasters), the Parish Council and Highways England.

A formal Stakeholder and Communication Strategy will be adopted.

Figure 10: Stakeholder Engagement

Stakeholders to be Handled in Accordance with Interest / Influence Matrix

To be Actively Engaged and Managed: High To be Passively Monitored: DfT Highways England Stakeholder Swale Borough Council Influence Developer

Low To be Actively Informed: To be Passively Conciliated: Local businesses Bus Operators (Arriva) Local Population Low Stakeholder Interest High

b) Can the project be considered as controversial in any way? Yes No If yes, please provide a brief summary in no more than 100 words

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

c) Have there been any external campaigns either supporting or opposing the project?

Yes No

There is an existing action group ‘The Campaign for an improved A2500 / B2231 Lower Road’ with a website http://lowerroad.co.uk/. The website is raising a petition for the improvements to be made and currently has 2161 signatures. They also run a Facebook page ‘Improve the Lower Road’. The Facebook page currently has 578 followers and 596 likes.

d) For large projects only please also provide a Stakeholder Analysis and append this to your application.

Has a Stakeholder Analysis been appended? Yes No N/A

e) For large projects only please provide a Communications Plan with details of the level of engagement required (depending on their interests and influence), and a description of how and by what means they will be engaged with.

Has a Communications Plan been appended? Yes No N/A

Local Park on Sheppey

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B12. MANAGEMENT CASE – Local MP support (Desirable)

a) Does this proposal have the support of the local MP(s);

Name of MP(s) and Constituency

1. Gordon Henderson, MP for Sittingbourne and Sheppey Yes No

Appendix I shows a letter of support from the MP Gordon Henderson.

Lower Road, Eastbound

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

B13. MANAGEMENT CASE – ASSURANCE (Essential)

We will require Section 151 Officer confirmation (Section D) that adequate assurance systems are in place.

Kent County Councils Section 151 Officer can confirm that adequate assurance systems are in place and this is reflected in Section D below. A letter has also been appended to this bid. See appendix J.

Lower Road, South from Barton Hill Drive

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Section C – MONITORING, EVALUATION AND BENEFITS REALISATION

C2. BENEFITS REALISATION

A Monitoring and Evaluation Engagement Process (MEP) (in line with DfTs ‘Monitoring and Evaluation Framework for Local Authority Major Schemes’) will be developed during the project planning stages.

The principal metric will be mode shift, specifically the number of people new to walking/cycling, either by specific individuals or at an aggregate level such as workplaces or schools. Counts will be used to identify the increase in cycle flows, supplemented by a resident questionnaire to enable further quantification of the benefits. Combining this with trip frequency/length, an estimate of outturn economic impacts such as health and decongestion will be made.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Section D – DECLARATIONS

D1. SENIOR RESPONSIBLE OWNER DECLARATION

D1. SENIOR RESPONSIBLE OWNER DECLARATION As Senior Responsible Owner for [project name] I hereby submit this request for approval to DfT on behalf of Kent County Council and confirm that I have the necessary authority to do so.

I confirm that Kent County Council will have all the necessary statutory powers in place to ensure the planned timescales in the application can be realised.

Name: Roger Wilkin Signed:

Position: Director of Highways, Transportation and Waste.

D2. SECTION 151 OFFICER DECLARATION As Section 151 Officer [name of authority] I declare that the project cost estimates quoted in this bid are accurate to the best of my knowledge and that Kent County Council

- has allocated sufficient budget to deliver this scheme on the basis of its proposed funding contribution - accepts responsibility for meeting any costs over and above the DfT contribution requested, including potential cost overruns and the underwriting of any funding contributions expected from third parties - accepts responsibility for meeting any ongoing revenue requirements in relation to the scheme - accepts that no further increase in DfT funding will be considered beyond the maximum contribution requested and that no DfT funding will be provided for this bid in 2020/21 - confirms that the authority has the necessary governance / assurance arrangements in place and, for smaller project bids, the authority can provide, if required, evidence of a stakeholder analysis and communications plan in place - confirms that if required a procurement strategy for the project is in place, is legally compliant and is likely to achieve the best value for money outcome Name: Signed:

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

Checklist

SECTION A

Combined Authority multiple bid ranking note (if applicable) Yes No N/A

A3. Map showing location of the project and its wider context Yes No N/A

A7. Combined Authority support letter (if applicable) Yes No N/A

A8. LEP support letter (if applicable) Yes No N/A

A8. Housebuilder / developer evidence letter (if applicable) Yes No N/A

SECTION B

B.7 Land acquisition letter (if applicable) Yes No N/A

B5. Projects impact pro forma (must be a separate MS Excel) Yes No N/A

B5. Appraisal summary table Yes No N/A

B7. Project plan/Gantt chart Yes No N/A

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX A LETTER OF SUPPORT FROM SWALE BOROUGH COUNCIL.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX B LETTER OF SUPPORT FROM THE LAND OWNER AND DEVELOPER.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX C LETTER OF SUPPORT FROM THE SOUTH EAST LEP.

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX D PROJECT IMPACT PROFORMA

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX E APPRAISAL SUMMARY TABLE

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX E APPRAISAL SUMMARY TABLE

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX F DETAILED PROJECT PLAN IN GANTT FORM

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX G RISK REGISTER WITH QUANTIFIED RISK ASSESSMENT (QRA)

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX H RISK MANAGEMENT STRATEGY

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX I LETTER OF SUPPORT FROM GORDON HENDERSON MP

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX J LETTER OF SUPPORT FROM KCC S151 OFFICER

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX K LETTER OF LAND VALUATION FROM BRUTON KNOWLES

Kent County Council A2500, LOWER ROAD IMPROVEMENT, MINSTER

APPENDIX K LETTER OF LAND VALUATION FROM BRUTON KNOWLES

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